Investment property analyzer
NOI, cap rate, cash-on-cash, DSCR, and a 5-year cash-flow projection.
| Year | Gross rent | NOI | Cash flow | Home value |
|---|---|---|---|---|
| Year 1 | $28,800 | $18,182 | -$696 | $309,000 |
| Year 2 | $29,664 | $18,872 | -$7 | $318,270 |
| Year 3 | $30,554 | $19,582 | $703 | $327,818 |
| Year 4 | $31,471 | $20,313 | $1,435 | $337,653 |
| Year 5 | $32,415 | $21,067 | $2,188 | $347,782 |
How this works
A rental property analysis measures a deal by four numbers: net operating income (NOI), cap rate (NOI ÷ price), cash-on-cash return (annual cash flow ÷ cash invested), and debt-service coverage ratio (NOI ÷ debt service).
NOI = income after vacancy − operating expenses (management, maintenance, tax, insurance, HOA). Debt service is excluded because NOI describes the property's return regardless of financing.
Cap rate = NOI ÷ purchase price. Cash-on-cash = annual cash flow ÷ total cash invested (down + closing + rehab). DSCR = NOI ÷ debt service; most rental lenders require 1.20–1.25 minimum.
50% rule. Quick sanity check: half of gross rent should cover operating expenses, leaving the rest for debt service and profit.